When you’re considering whether to invest in a corporate wellness programme, the big question, and the one that usually stops decision-makers in their tracks — is: “Will this pay off?” It’s not just about being a “nice to have.” It’s about whether a well-designed wellness initiative can deliver meaningful returns for both employees and the organisation.
How Much Can a Wellness Program Cost?
A typical wellness program can cost anywhere from $150 to $2000 per employee per year, depending on the size of the company and the benefits provided. Companies can be hesitant to invest so deeply; however, the many benefits of wellness programs make it worth it in the long run.
How much should a company invest in a workplace program? According to the Wellness Council of America, $100 to $150 per participant investment may have been enough a few years ago, but now they recommend about $200 to $400 per eligible employee per year.
The costs of a wellness program will depend on the range of services the solution offers, how many employees participate, the level of customization the platform offers, and the incentives and rewards planned.
Understanding the Costs of Wellness Programs
The costs associated with creating and maintaining an employee wellness program will depend on the type of benefits and incentives offered to employees. Some of the most common costs include the following:
Biometric screening
Biometric screening assessments aim to detect health risk warning signs. They may take into account blood pressure, stress, cancer screens, body mass index, cholesterol, blood sugar, and tobacco use. The average cost of on-site screening is $45 to $70 per employee.
These assessments may work as a financial incentive, since self-funded health insurance is a concern for most employees in medium- to large-sized companies.
Health assessments
Bringing in a health coach or evaluator to meet with employees and devise a personalized wellness plan can be an interesting incentive for many employees. The health coach can assess employees’ nutrition, healthy habits, management of chronic conditions, and medication.
Benefits-based incentives
Benefits-based incentives tend to be the most expensive since they involve health insurance premiums or increasing contributions to a health fund. Their cost will depend on what incentives you add to the wellness program. According to a Fidelity Investments study, the average budget per employee in 2021 was $238.
Health benefits costs are rising too. Mercer’s National Survey of Employer-Sponsored Health Plans of 2022 stated a health benefit cost growth of 5.6% in 2023.
Workout programs, such as gym membership discounts
Companies can partner with local gyms and offer employees discounted rates on memberships. The cost of this benefit will depend on their arrangement with the gym. Sometimes companies will cover the discount, and if so, there will be an added cost for the company.
Monetary gifts and rewards for employees
Some incentives can be monetary, and would need to be factored into the total costs. Some ideas for monetary incentives may include gift cards to health shops, health food markets, athletic shops, or fitness coaching.
Making Data-Driven Decisions on Wellness Investments
Because implementing a wellness program requires investing time and money, it is unwise to simply wing it. Making data-driven decisions reduces the risk of going over budget and ensures ROI. There are a few critical steps to take when creating a wellness program:
1. Assess Employee Needs and Preferences
Start by understanding what your employees actually want and need. Every workforce is different — what motivates one group may fall flat for another.
Use health risk assessments (HRAs), anonymous surveys, and focus groups to uncover trends in physical, mental, and social well-being. Are stress and burnout the biggest challenges? Do employees struggle to find time for exercise? Would they value financial-wellness education? The more you personalize your program to your workforce, the higher your participation and ROI will be.
Pro tip: Segment your results by role, department, or location. Remote workers, for example, often prioritize flexibility and mental health resources, while on-site teams might value physical activity challenges or ergonomic support.
2. Use Health Data and Trends to Adjust the Program
To measure progress, you first need to know where you’re starting. Look at existing data sources — such as insurance claims, absenteeism records, and turnover rates — to identify key risk areas and cost drivers. For example, you might discover high claims related to chronic conditions like diabetes or hypertension, or productivity losses tied to stress-related absenteeism.
By mapping these insights, you can design a wellness program that directly targets your biggest challenges and offers quantifiable outcomes later.
3. Integrating Technology and Data Analytics
Not all wellness programs are created equal. Some focus on physical activity, while others offer integrated support across mental, social, and financial wellness.
When comparing vendors or platforms, look for:
Customization: Can the program reflect your brand and company culture?
Data and analytics: Does it provide dashboards and outcome tracking?
Integration: Can it sync with existing HR systems, benefits, and communication tools?
Scalability: Will it grow with your organization as participation expands?
Engagement tools: Gamification, challenges, incentives, and personalized recommendations that keep employees motivated.
Remember: A flashy app won’t drive impact on its own — engagement, usability, and alignment with your culture matter most.
4. Data Analysis
Without clear success metrics, even the best-intentioned wellness program can lose direction. Identify Key Performance Indicators (KPIs) that reflect both participation and outcomes.
Common examples include:
Increase program participation to 70% of eligible employees within 12 months
Reduce average sick days per employee by 15% in the first year
Decrease the percentage of high-risk health factors (e.g., hypertension, smoking, obesity) by 10% over two years
Improve employee engagement or satisfaction scores by X%
Tie these KPIs to business outcomes, not just activity levels. This helps demonstrate ROI to leadership and sustain support over time.
5. Evaluate Wellness Program Options
Wellness isn’t a one-time campaign — it’s a culture shift. The greatest returns usually appear after consistent implementation over several years, as behaviour change and health improvements take root.
Build your budget to support ongoing engagement, annual assessments, and evolving programming. Even small, sustained investments can outperform large, one-off initiatives if they’re consistent and data-informed.
Think of it this way: The first year builds awareness. The second drives engagement. The third delivers measurable, lasting results.
6. Define measurable KPIs
Measurement is where good programs become great. Use your data to track participation, satisfaction, and measurable health outcomes over time. Then, take action: refine what works, retire what doesn’t, and adjust your goals based on what the data reveals. Share progress transparently with leadership and employees — seeing tangible results keeps both groups invested.
Optimize the Costs of Your Wellness Program With CoreHealth
Investing in wellness programs is a strategic decision that can yield significant benefits for both employees and employers. While the initial costs may seem substantial, the long-term advantages outweigh the expenditures. Well-designed wellness programs are not just a luxury but a necessity for forward-thinking organizations.
CoreHealth offers a robust platform that simplifies the implementation and management of wellness programs. Via a comprehensive suite of tools, it allows organizations to customize wellness initiatives, track progress, and measure outcomes effectively. By providing an all-in-one solution, CoreHealth’s platform leverages advanced data analytics to provide actionable insights, reducing the administrative burden and costs associated with wellness program management.
Expand your knowledge with these articles from the CoreHealth blog:
